Tertiary Export Processing Firms in Ghana: The State of the Processing Technology

Abstract

For several years, the Timber Export Industry in Ghana has concentrated its activities on primary and secondary processing to the detriment of higher-value processing. While this focus has generated positive cashflows for some operations, the lack of a solid in-state value-added wood processing sector denervates the higher export earnings potential by the country and minimizes employment. Studies have shown that the secondary processing of timber concerning lumber (air-dried and kiln-dried), veneer, and plywood remains the most exported product in terms of volume and value for the past two decades (TIDD 2022). New studies have highlighted recent trends in processing emerging forest products such as Bamboo, Rubberwood, smaller-diameter logs, and other Asian and plantation species such as Teak and Cedrella. Indeed, as raw material, wood provides a resilient basis for various conversion processes, which are widely untapped in most African forested countries (FAO, 2013, Adeyoju 1975) such as Ghana. The Forest Development Master Plan (FDMP) 2016-2036 aims to transform the industry into a high-value-added product manufacturer and exporter seeking to re-tool, retain, and standardize by 2030, where downstream processing activities would contribute 60% of the processing chain. This policy brief provides a comprehensive analysis of the latest data on machinery and empirical evidence in the timber trade, to set out transformational insights and pathways for promoting value addition, maximum wood utilization and stimulating investments. The study is part of the monitoring and evaluation framework for the FDMP to monitor the progress of the achievements of financial and technical targets and critical results of Ministry of Lands and Natural Resource (MLNR) operations (FDMP 2016-2036).